Here Are the Best-Performing High-Yield Dividend Stocks of 2025. Are They Good Picks for the New Year?

Core Viewpoint - High-yield dividend stocks have shown exceptional performance in 2025, contrary to the perception that they are boring or overly risky [1] Group 1: Methodology for Stock Selection - Stocks were screened for dividend yields of at least 2.12%, which is double the current yield of the SPDR S&P 500 ETF [3] - Stocks with market capitalizations below $300 million were excluded to mitigate risks associated with smaller companies [3] Group 2: Top Performing Stocks - Aura Minerals (AUGO) has achieved a gain of 334% with a dividend yield of 2.8% [4] - AngloGold Ashanti (AU) has increased by 290% this year, offering a dividend yield of approximately 2.4% [6] - Banco Santander (SAN) has risen by 160% with a dividend yield of nearly 2.2% [8] Group 3: Factors Driving Performance - The significant rise in Aura Minerals and AngloGold Ashanti's stock prices is primarily attributed to soaring gold prices, driven by economic and geopolitical uncertainties [10] - The decline in the U.S. dollar's value and volatility in bond markets have made gold a more attractive investment [11] - Banco Santander's growth is attributed to robust earnings and record profits for six consecutive quarters, aided by higher interest rates and improved balance sheets [12] Group 4: Future Outlook - The future performance of Aura Minerals and AngloGold Ashanti is closely tied to gold prices, which are expected to remain high but may see moderated gains in 2026 [13][14] - Banco Santander is anticipated to continue rising, but at a slower pace than in 2025, with a forward price-to-earnings ratio of around 10.7 indicating reasonable valuation [15]